Business Basics Resource Guide
Milt Wright & Associates
Resources Needed to Start Your Own Business Cont.
What
kind of Insurance do you need?
Common
types of insurance coverage frequently purchased by
small business owners include property insurance, liability
insurance, and, if you employ others, workers’
compensation insurance. If you have a business loan,
your banker also may require "key man" insurance.
Property insurance covers the building or buildings and contents of the business. Outdoor signs, crime coverage, property of others, glass coverage, etc., can be covered as well, depending on the needs of your business.
General Liability coverage covers sums you could be obligated to pay due to bodily injury or property damage to others. If you do not own your building, your landlord normally would need to be added as an additional insured on the policy in order to protect her. Liability covers the premises and operations of the insured, as well as her products and completed operations.
Workers’ Compensation insurance protects your employees if they suffer job-related injuries. The policy pays the medical bills for the employee who is injured on the job. If there is time off from work due to that injury, the insurance pays disability income to the injured worker.
Key Man insurance protects key individuals in a business. If you are operating with a business loan, your banker may require "key man" insurance (or life insurance) as a way for the bank to get its money back if you are incapacitated in some way. Sole proprietors generally don't carry key man insurance; however, a partnership may have key man insurance.
Professional Liability insurance protects against claims arising from you acts, errors or omissions in rendering services of a professional nature. Businesses involved in everything from advertising to engineering need to consider this coverage.
*The Build WorkSource web site provides material on topics of interest to businesses. It is not intended as legal advice or to answer specific legal or employment problems. The information presented in the Build WorkSource web site is from many sources therefore there can be no warranty or responsibility as to the accuracy, originality or completeness. Build WorkSource is not engaged in rendering legal or other professional counsel.